Showing posts with label topglove. Show all posts
Showing posts with label topglove. Show all posts

Saturday 17 December 2022

Topglove

Fiscal year is February-January. All values MYR Millions.
2022 2021 2020 2019 2018
5-year trend 

INCOME STATEMENT 
Sales/Revenue 5,572 16,361 7,237 4,801 4,221 
Gross Income 953 11,102 2,850 884 842 
SG&A Expense 612 1,153 604 402 308 
EBIT 341 9,949 2,248 482 - 
Interest Expense 4 4 34 80 37 
 Pretax Income 362 10,031 2,167 424 523 


CASH FLOW STATEMENT
 Net Income before Extraordinaries 358 10,034 2,166 424 523 
Net Operating Cash Flow 153 7,837 3,454 537 353 
 Capital Expenditures (954) (1,335) (816) (624) (459) 
 Free Cash Flow (800) 6,502 2,638 (31) (106) 

 Cash Dividends Paid - Total (529) (5,474) (372) (217) (196) 
Net Financing Cash Flow (690) (6,851) (17) (35) 1,281 


BALANCE SHEET
 Cash & Short Term Investments 951 2,508 2,883 253 359 
ST Debt & Current Portion LT Debt 309 318 316 1,041 883 
Long-Term Debt 1,284 1,459 1,531 1,379 1,330 

 Total Current Assets 2,111 4,346 4,288 1,539 1,607 
Total Current Liabilities 996 2,198 2,133 1,592 1,452 

 Total Equity 5,618 5,925 4,896 2,554 2,398
 Liabilities & Shareholders' Equity 8,117 9,782 8,706 5,688 5,297


Average Growth Rates 
Top Glove Corp. Bhd 
Past Five Years Ending 01/01/0001 (Fiscal Year) 
Revenue +6.44%
 Net Income -9.61%
 Earnings Per Share -10.04% 
Capital Spending +21.53%
 Gross Margin +36.35%
 Cash Flow +133.03% 


 KEY STOCK DATA 
P/E Ratio (TTM) N/A 
EPS (TTM) RM-0.01 
Market Cap RM5.89 B 
Shares Outstanding 8.21 B 
Public Float 4.57 B 
Yield 1.66%(12/16/22) 
Latest Dividend RM0.252000004(04/06/21) 
Ex-Dividend Date 03/23/21

Wednesday 15 July 2020

Glove stocks uniform trading pattern sparks intrigue



Justin Lim
theedgemarkets.com

July 15, 2020


KUALA LUMPUR (July 15): All seven glove stocks on Bursa Malaysia took a nail-biting roller-coaster ride together during the final trading hours yesterday.

The seven counters plummeted simultaneously shortly after 4pm, but rebounded soon after, right before the closing bell. Share price charts show a uniform V-shape pattern among the rubber glove makers (see charts), whose share prices have rocketed at least several folds since March.


What was intriguing was that there was no negative news flow about the rubber glove industry that could possibly have swung the share prices in such a drastic and uniform fashion.

The sudden plunge among the seven glove stocks during the final trading hours was in the range of 15% to 25%. The big drop on Top Glove Corp Bhd and Supermax Corp Bhd dragged the FBM KLCI down by 1.8% to its intraday low of 1,577.33 before it bounced back to above 1,600-level to close at 1,598.75 points, down 7.68 points.

Investment analysts were baffled by the share price trend.

Some experts suspected that algorithmic trading activities could be at play. Algorithmic trading is a method of executing orders using automated pre-programmed trading instructions that account for variables such as time, price, and volume.

Malacca Securities Sdn Bhd head of research Loui Low did not rule out the possibility that algorithmic trading activities could be involved.

Another possibility, he believed, could be that the glove counters had triggered the stop limit for various investors and brokers.

MIDF Research senior analyst Imran Yassin Md Yusof, meanwhile, commented that investors had started to take profits following the strong share price rallies.

Top Glove, Supermax and Hartalega Holdings Bhd shares all settled in the negative territory yesterday, after closing at their record highs on Monday.

Supermax experienced the steepest drop with a 25.2% plunge to a low of RM12.52. It closed at RM15.90.

Similarly, Top Glove sank 15.4% to its intraday low of RM20.50, but bounced back to close at RM23.16. Hartalega sank 15.02% to a low of RM15.28, but later pared most of its losses to finish at RM17; Kossan Rubber Industries Bhd slid 14.2% to RM12, before closing at RM13.50.

Comfort Gloves Bhd's share price also tumbled 19.2% to RM3.33, before settling at RM3.84. Careplus Group Bhd fell 21.7% to RM1.48, then rebounded to close at RM1.76, while Rubberex Corp (M) Bhd dropped nearly 18% to RM3.22, to eventually settle at RM3.65.


https://www.theedgemarkets.com/article/glove-stocks-uniform-trading-pattern-sparks-intrigue

Tuesday 14 July 2020

The glove put warrants poser


Lai Ying Yi 
 theedgemarkets.com 

 July 14, 2020 KUALA LUMPUR 

(July 13): It is undeniably a bull market for the glove makers currently. 

However, an interesting trend has also emerged in the local market on Monday — an equally frenzied buying of two newly-listed structural put warrants on Top Glove Corp Bhd (Top Glove-HA) and Supermax Corp Bhd (Supermax-HB). 

The strong interest in the derivatives that hedge against a fall in share prices of Top Glove and Supermax has made many in the investing fraternity perplexed. 

The prices of the two derivatives, a bear market tool, rocketed over 200%.

Top Glove-HA soared by 207% and Supermax-HB by 291%, on the day when the two underlying stocks climbed to their all-time highs. Supermax saw its biggest ever share price leap of RM2.36 to RM15.98. Top Glove’s share price gained RM2.08 or 9.5% to RM24. 

The large trading volumes recorded were another evidence of the strong interest in the two derivatives. TOPGLOV-HA was the most traded securities on Bursa on Monday, with 613.47 million units having changed hands, while Supermax-HB was the third most traded counter with 567.9 million units done. 

In a nutshell, put warrants grant holders the right to sell the underlying shares at a specified price (exercise price) within a limited period of time (maturity). Structured put warrants are hedging tools. Investors tend to use structured put warrants to hedge against any big drop in the underlying share prices. 

Some market observers commented that the surge in interest in the two put warrants, which made their debut just two weeks ago, could be attributed to the increasing number of glove bears in the market, although the bulls still swarm the market in general. 

“No one could deny that the downside risk on those glove counters are heightening, as their share prices are trading at such hefty premiums. Such put warrants would allow investors to hedge their long position on the underlying shares,” said a market observer. 

Even so, the spike in the prices of the two put warrants has been astonishing, to say the least. Given that the premium of the two derivatives are near 100% based on the closing price on Monday, the hedging tools themselves have also become highly risky. 

Based on the exercise price and conversion ratio, the put warrants are pricing the mother shares at RM2 for Top Glove and 30 sen for Supermax. 

“Investors will only make money if the underlying mother share drops below these two levels (assuming the investors hold onto the derivatives until the expiry dates). Is that possible?” explained a warrant specialist. 

 Nonetheless, structured warrants are a trading instrument so investors are unlikely to hold onto the derivatives until expiry date. In this case, the warrant holders who bought in earlier would have made handsome gains after the price rally on Monday, if they locked in their profits.





Thursday 5 March 2020

Analysts see rubber glove stocks bouncing off

TheEdge Thu, Mar 05, 2020


KUALA LUMPUR: The Covid-19 epidemic has pushed investors into stocks of rubber glovemakers, which have seen an uptick in demand.

The Healthcare Index climbed 13.77 points or 1.03% to close at 1,344.72 yesterday, with the Big Four rubber glove players dominating the list of most active counters on Bursa Malaysia.

Among the most active stocks was Careplus Group Bhd, which saw 62.9 million shares change hands. The stock closed up 12.73% at 31 sen with a market capitalisation (cap) of RM165 million.

Shares in Adventa Bhd gained 10.77% to settle at 72 sen, bringing a market cap of RM110 million.

Supermax Corp Bhd rose 5.59% to end the day at RM1.70, while Hartalega Holdings Bhd and Kossan Rubber Industries Bhd were up 3.48% and 1.46% to close at RM6.24 and RM4.85 respectively. Top Glove Corp Bhd shares were unchanged at RM5.70.

Analysts said the stage is now set for a solid growth in the rubber gloves sector in 2020 following three quarters of anaemic quarterly earnings growth.

“From a low base due to the lacklustre demand of the past 12 months, the sector will benefit from restocking activities, ramping up demand as the current outbreak of Covid-19 enforces higher hygiene standards,” Kenanga Research analyst Raymond Choo Ping Khoon said in a sector report on Feb 7.

He noted that even before the Covid-19 crisis set in, the third quarter of 2019 (3Q19) results season had indicated a positive recovery in demand and hence, volume growth of industry leaders such as Top Glove and Hartalega. Both players recorded 6% and 14% sequential volume growth, respectively.

“From our ground checks, demand for nitrile gloves is picking up again with players’ new capacities swiftly taken up. We believe this uptick in demand is turning positive and should be reflected in players’ bottom line in subsequent quarters.

“For illustration purposes, going forward, assuming nitrile:latex [ratio] of 80:20 (currently 67:37) and based on estimated global demand of 308 billion pieces in 2020 (forecast for 2019 is 300 billion pieces and assuming an 8% growth rate in 2020), this implies nitrile growth rate of 30% or an additional 51 billion pieces from switching to nitrile gloves,” he added. Kenanga Research has an “overweight” rating on the sector.

Affin Hwang Investment Bank said earnings growth for rubber glovemakers declined slightly in the just-ended 4Q19 as some of the manufacturers were still feeling the negative impact from the labour shortage issue.

“However, most of them have started to deliver stronger quarter-on-quarter earnings growth due to stronger demand from the US, as buying patterns have started to normalise since the tariff hike in China gloves in 3Q19. We believe that as most manufacturers are already operating at high utilisation rates, the recent surge in demand due to Covid-19 would provide them more flexibility in setting selling prices,” it said in a strategy note on Tuesday.

On Jan 24, Malaysian Rubber Glove Manufacturers Association president Denis Low announced that its members are prepared to gear up to produce more gloves to meet the requirements if the Covid-19 outbreak becomes pandemic.

At press time, the number of confirmed cases of Covid-19 totalled 93,500, with at a death toll of at least 3,204 people worldwide.

Confirmed cases have also been ballooning in other parts of the world, including in advanced and developing economies such as South Korea, Italy and Iran. Malaysia reported 14 new cases yesterday, bringing its tally to 50.

According to Bloomberg data, most of the glove counters are still trading below analysts’ consensus target price (see table), except for Hartalega. At yesterday’s closing of RM6.24, the stock is trading above its average target price of RM6.15.

Those currently trading below the analysts’ consensus target prices are Comfort Gloves Bhd (21%), Kossan (15%), Supermax (14%) and Top Glove (5%).


https://www.klsescreener.com/v2/news/view/647178/analysts-see-rubber-glove-stocks-bouncing-off




ADVENTA    0.715
AFFIN           1.770
BURSA         5.480
CAREPLS     0.305
COMFORT   0.875
HARTA         6.220
KENANGA   0.440
KOSSAN      4.940
SUPERMX   1.720
TOPGLOV    5.720

Wednesday 14 June 2017

Top Glove

Top Glove’s revenue to be firmer in third quarter

KUCHING: Top Glove Corporation Bhd’s (Top Glove) third quarter of financial year 2017 (3QFY17) revenue is expected by analysts to be firmer year on year (y-o-y) while earnings is to range from RM80 to RM85 million.
Affin Hwang Investment Bank Bhd (AffinHwang Research) expected 3QFY17 revenue to be firmer y-o-y on higher ASP revisions, as the research firm saw competition abating and industry supply-demand dynamics being more balanced, leading to better pricing management.
“Volume growth should stay relatively tepid, as there was no significant capacity addition in the quarter,” it said.
Recent ringgit appreciation is a potential headwind, but AffinHwang Research noted the stronger ASP increase should offset the currency impact.
For 4QFY17, the research firm expected progressively higher topline with the consolidation of two small factories TopGlove acquired recently and the commissioning of a new factory (annual capacity of three billion gloves) in June 2017.
As for 3QFY17 earnings, AffinHwang Research expected it to range from RM80 million to RM85 million, which would imply 28 to 36 per cent y-o-y earnings growth.
“Sequential earnings growth momentum may moderate, largely due to the lack of additional capacity and the higher raw material prices,” it said.
That said, the research firm noted that raw-material prices have been trending lower due to the end of the wintering season and moderating China automotive sales in May 2017, which should be positive for progressive earnings growth in 4QFY17E.
The research firm also expected firmer margins ahead on higher automation, as well as an improving product mix and increased efficiency.
Despite moderating raw-material prices, the year to date (YTD) average price of RM7.04 per kilogram (kg) for natural rubber was still above Affin Hwang’s previous assumption of RM5 to RM5.50 per kg.
Hence, AffinHwang research lowered its FY17-19E earnings per share (EPS) by two to 16 per cent after lifting its raw-material assumptions to RM6 to RM6.50 per kg.
That said, the research firm maintained its strong earnings outlook for Top Glove (EPS growth of 28 per cent y-o-y in FY18E) driven by capacity expansion and a higher nitrile contribution.
“Top Glove remains our top sector pick for its growing nitrile mix, strong volume expansion and relatively compelling valuation,” the research firm said.
Despite the cuts to the research firm’s earnings, Affin Hwang raised its 12-month target price to RM6.50 per share, from RM5.80 per share previously.
http://www.theborneopost.com/2017/06/10/top-gloves-revenue-to-be-firmer-in-third-quarter/

Wednesday 12 October 2016

Top Glove achieved another record performance despite intense competition

PRESS RELEASE
Top Glove CorporationBhd


TOP GLOVE MARKS ANOTHER RECORD YEAR

Group achieves historical highs in Revenue and Profit

Shah Alam, Wednesday, 12 October 2016 – Top Glove Corporation Bhd (“Top Glove”) today announced its results for the Fourth Quarter (“4QFY16”) and full year ended 31 August 2016 (“FY2016”), marking yet another record year, with historical highs in both full year Revenue and Profit.

Posting another outstanding performance for the financial year 2016, the Group attained its highest Revenue ever of RM2.9 billion, an increase of 15.1% over FY2015. Meanwhile Profit Before Tax and Profit After Tax each also registered record highs, at RM442.6 million and RM362.8 million,
respectively representing an upturn of 21.8% and 29%. Volume (quantity sold) was also at an all-time high, notwithstanding intensifying competition and pricing pressure.

The robust set of numbers was attributed to several improvement initiatives which have proven instrumental in enhancing quality and cost efficiency, the twin pillars of Top Glove’s time-tested success formula. A stronger USD, as well as lower raw material prices earlier in the financial year, also boosted the Group’s performance.

For 4QFY16, the Group achieved Revenue of RM722.1 million and Net Profit of RM65.8 million, delivering growth of 7.4% and 4.8% respectively, compared with 3QFY16, notwithstanding intensive competition and cost increases stemming from hikes in minimum wage, as well as the natural gas tariff.

On a year-on-year comparison, 4QFY16 results were relatively softer, with a marginal increase in Revenue of 1.8%, while Profit After Tax declined by 36.2%. The less favourable comparison came on the back of a challenging environment in 2HFY16, as tailwinds from 1HFY16 gradually turned to
headwinds. Increased competition in the second half of the financial year also led to a downward revision of the average selling price, while volatility in raw material prices and forex created a mismatch in the cost pass-through system.

On Top Glove’s performance, its Executive Chairman, Tan Sri Dr Lim Wee Chai remarked, “We have done well in FY2016. Amidst a challenging business environment with substantial cost increases and intense competition, we have achieved another record performance and our best year yet!” “This is a credit to the internal quality and efficiency enhancements we have been implementing continually, as well as our management team and staff, who have worked hard to ensure we deliver a performance worthy of the Top Glove name” he added.

Top Glove which celebrates its 25th anniversary this year, remains on expansion mode. The Group completed the expansion of Factory 27 (Lukut) in August 2016 while the expansion of Factory 6 (Thailand) is expected to be completed by November 2016. Meanwhile, in progress is the construction of a new facility, Factory 30 (Klang), expected to commence production by April 2017, by which time Top Glove will have a total of 540 production lines and a production capacity of 52.4 billion pieces of gloves per annum. With a view to expanding its production capacity, the Group also recently acquired a factory in Klang (Factory 31). The facility is estimated to be able to produce 6 billion pieces of gloves per annum, with Phase 1 targeted to be operational by mid-2017. Top Glove will continue to pursue M&A opportunities that synergise with its current business, both in similar or related industries.

On 28 June 2016, the Group successfully completed its secondary listing on the Mainboard of the Singapore Exchange, an exercise undertaken to add and create value for its shareholders and stakeholders.

Honouring its commitment to enhance shareholder value, the Board of Directors has proposed a final dividend of 8.5 sen, bringing the total FY2016 dividend payout to 14.5 sen, subject to shareholders' approval at the upcoming AGM in January 2017. This represents a 26% increase in dividend per share compared with the previous financial year and a dividend payout ratio of 50.3%.

As at 31 August 2016, the Group also maintained a healthy balance sheet and a positive net cash position of RM303.7 million.

Top Glove foresees a competitive business landscape ahead, with the likelihood of oversupply and eventually, industry consolidation taking place. However, the Group is confident of overcoming any challenges that may arise by enhancing its cost management and optimising the efficiency of its production lines. The Group views the potential consolidation as an M&A opportunity.

Notwithstanding its commendable results, Tan Sri Dr Lim asserts, “We do not take our achievement for granted. Continuous improvement in quality and efficiency is our duty and an ongoing journey for us. This will ensure we stay healthy and competitive for another 25 years and beyond”.




http://www.financialreport.biz/File/2016/10/12/7113%20-%201308477838029.pdf

Monday 30 September 2013

Rubber gloves sector downgraded to neutral

Rubber medical gloves being produced at Latexx Partners plant in Kamunting Industrial Estate.

PETALING JAYA: Maybank Investment Bank Research has downgraded the rubber gloves sector from “overweight” to “neutral” as the valuations of the stocks are fairly reflective of fundamentals now.
Analyst Lee Yen Ling said price-to-earnings (PER) valuations had risen from eight to 16 times end-2012 to 11 to 19 times currently.
“Though new supply (for nitrile gloves) looks aggressive, near-term price competition is likely to be mild, for new capacity will just about match demand, we believe, with the latter expanding by about 20% year-on-year,” she said.
Demand for nitrile glove sales were also driven by a shift in customer preference from latex powder-free to nitrile gloves, she said, adding that margins for nitrile gloves remained higher compared with latex gloves by more than 6 percentage points as a result of higher pricing and lower raw material cost.
Lee pointed out that glove manufacturers usually did not gain or lose significantly on foreign exchange volatility as most of them bought forward contracts which expired in two to three months to sell US dollars when they delivered the products as a way to hedge their US-denominated receivables.
She added that the recent fuel price hike, which led to higher transportation costs for the companies, had insignificant impact on them as transportation accounted for only 2% to 3% of total costs, thus they were not adjusting glove prices.
The research house’s top pick was Kossan Rubber Industries Bhd on the back of its better value proposition compared with its peers.
She has given a higher target price of RM7.60 to the counter as she revised Kossan’s PER upwards to 16 times from 15 times.
Meanwhile, she maintained a “hold” rating on Hartalega Holdings Bhd with the same target price of RM6.71 whereas the target price for Top Glove Corp Bhd was re-rated downwards to RM6.40 with a downgraded “hold” call as weaker latex powder-free glove sales were factored in.

Thursday 11 October 2012

Topglove (11.10.2012)

Dividends % chg
Curr. FY0 16.00 45.5%
Prev FY1 11.00 -31.3%
Prev FY2 16.00
Curr. DY  3.05%
Risk vs Returns
Upside 1.64 62%
Downside 1.00 38%
Returns
One Yr Apprec Pot.  7%
Avg Yield  4%
Avg Tot. Ann Return 12%
(for next 5 years)
INPUT VARIABLES
Today's Share Pr $ 5.25
EPS GR % 8%
Avg H. PE 15.0
Avg. L. PE 12.0
Rec. Severe Low Pr 4.06
Current PE 16.06
Signature PE 13.50
RV 119%
Rational Price 4.41
Dividends
Present Dividend 16.00
Avg % DPO 49%
Present Div Yield 3.05%
Present High Yield 3.94%
EPS G. RATE 8%
Present Market Pr. 5.25

ZONING
Present Market Price of  5.25 is in the  Middle 1/3 Range





Mid-Price           = 5.63
Upper 1/3           = 6.16          to 7.20 (Sell) 
Middle 1/3           = 5.11          to 6.16 (Maybe)
Lower 1/3           = 4.06          to 5.11 (Buy)








Rec. qRev 607229 q-q % chg 1% y-y% chq 12%
Rec qPbt 67121 q-q % chg 5% y-y% chq 92%
Rec. qEps 10.27 q-q % chg 18% y-y% chq 143%
ttm-Eps 32.69 q-q % chg 23% y-y% chq 79%



Stock Performance Chart for Top Glove Corporation Berhad


Disclaimer:  These data are for my own use.  It is not a recommendation. Please do your own due diligence.

Wednesday 26 September 2012

Hartalega versus Top Glove

Comparing Hartalega and Top Glove performance over 2 years from 2009 to 2011

Hartalega Period (Yrs) 2
Mar-09 Mar-11 Change CAGR
millions millions
Equity 254.2 494.44 94.51% 39.47%
LT Assets 246.4 348.86 41.58% 18.99%
Current Assets 128.36 286 122.81% 49.27%
LT Liabilities 67.5 61.29 -9.20% -4.71%
Current Liabilities 52.76 78.78 49.32% 22.20%
Sales 443.2 734.92 65.82% 28.77%
Earnings 84.51 190.3 125.18% 50.06%
Interest expense 2.43 2.47 1.65% 0.82%
D/E 0.23 0.08
ROA 22.55% 29.98%
ROE  33.25% 38.49%
Market cap 1512.26 2908.38 92.32% 38.68%
P/E 17.89 15.28
Earnings Yield 5.59% 6.54%
P/BV 5.95 5.88
DPO ratio (historical) 30.37%
Dividend Yield range High Low
4.60% 2.60%
Capital changes  -
Top Glove Period (Yrs) 2
Aug-09 Aug-11 Change CAGR
millions millions
Equity 824.51 1121.8 36.06% 16.64%
LT Assets 620.91 816.11 31.44% 14.65%
Current Assets 511.5 593.69 16.07% 7.74%
LT Liabilities 42.37 47.24 11.49% 5.59%
Current Liabilities 244.06 216.18 -11.42% -5.88%
Sales 1529.08 2053.92 34.32% 15.90%
Earnings 169.13 113.09 -33.13% -18.23%
Interest expense 8.53 0.24 -97.19% -83.23%
D/E 0.02 0
ROA 14.94% 8.02%
ROE  20.51% 10.08%
Market cap 2118.81 2672.54 26.13% 12.31%
P/E 12.53 23.63
Earnings Yield 7.98% 4.23%
P/BV 2.57 2.38
DPO ratio (historical) 42.08%
Dividend Yield range High Low
3.60% 2.00%
Capital changes  -



Stock Performance Chart for Hartalega Holdings Bhd

Stock Performance Chart for Top Glove Corporation Berhad

Thursday 30 August 2012

Top Glove - Return on Retained Earnings

Top Glove

(Figures are in sens)

Year DPS EPS Retained EPS
2002 0.6 3.5 2.9
2003 1.8 4.9 3.1
2004 2.4 7.6 5.2
2005 2.7 11 8.3
2006 3 14.6 11.6
2007 4.6 17.3 12.7
2008 5.5 18.7 13.2
2009 11 28.5 17.5
2010 16 42.4 26.4
2011 11 19.4 8.4
Total 58.6 167.9 109.3
2002-2011
DPO 35%
EPS increase (sen) 15.9
Return on retained earnings  15%


Friday 22 June 2012

Investor's Checklist: Consumer Goods


Find companies that enjoy the cost advantages of manufacturing on a larger scale than most other competitors.  One related issue is whether the firm holds dominant market share in its categories.

Look for the firms that consistently launch successful new products - all the better if the firm is first to market with these innovations.

Check to see if the company is supporting its brand with consistent advertising.  If the firm constantly promotes its products with sale prices, it's depleting brand equity and just milking the brand for shorter-term gain.

Examine how well the firm is handling operating costs.  Occasional restructuring can help squeeze out efficiency gains and lower costs, but if the firm is regularly incurring restructuring costs and relying solely on this cost-cutting tactic to boost its business, tread carefully.

Because these mature firms generate so much free cash flow, it's important to make sure management is using it wisely.  How much of the cash is turned over to shareholders in the form of dividends or share repurchase agreements?

Keep in mind that investors may bid up a consumer goods stock during economic downturns, making the shares pricey relative to its fair value.  Look for buying opportunities when shares trade with a 20 percent to 30 percent margin of safety.  


Ref:  The Five Rules for Successful Stock Investing by Pat Dorsey



Read also:
Investor's Checklist: A Guided Tour of the Market...

Friday 16 March 2012

TOP GLOVE NET PROFIT SURGED BY 109%


Financial results for the second quarter ended February 29, 2012 (“2QFY12”)

Klang, Thursday, March 15, 2012 –Top Glove Corporation Bhd (Top Glove) today announced sales revenue of RM549.0 million and net profit of RM54.2 million in 2QFY12 for the financial year ending 31 August 2012.

Revenue for 2QFY12 recorded a growth of 13% to RM549.0 million from RM485.2 million in the corresponding quarter last financial year, and net profit surged 109% to RM54.2 million from RM25.9 million.

On a six month cumulative (September to February) comparison between 1HFY12 and 1HFY11, revenue rose 13% to RM1,103.8 million from RM976.7 million and net profit improved 39% to RM86.7 million from RM62.3 million. The improved performance was attributed to an increase in glove demand, improved operational efficiency and a downtrend in latex prices which reduced from an average of RM8.14/kg in 1HFY11 to RM7.58/kg in 1HFY12.

Top Glove’s Group Chairman, Tan Sri Lim Wee Chai commented “The stronger US dollar and lower latex prices gave us better net profit for 2QFY12. We have learnt from past experience on excessive increases in latex prices and shall remain cautious to continue with our planned strategy for a more balanced product mix of latex and nitrile gloves to cater to on-going customer preference.”

Saturday 15 January 2011

A Brief Look at Top Glove Corporation Bhd.

Top Glove Corporation Berhad

Business Description:
Top Glove Corporation Berhad is a Malaysia-based investment holding company providing management services. The Company's subsidiaries are engaged in the manufacture and trading of gloves; producing and selling latex concentrate, and property investment and trading of machinery. It operates in Malaysia, Thailand and People's Republic of China. The Company's subsidiaries include Top Glove Sdn. Bhd., TG Medical Sdn. Bhd., Great Glove Sdn. Bhd., Top Glove Engineering Sdn. Bhd. and TG Medical (U.S.A.) Inc. On March 25, 2010, the Company acquired Top Quality Glove Sdn. Bhd.


Current Price (7/1/2011): 5.42
2010 Sales 2,079,432,000
Employees: 11,500
Market Cap: 3,351,370,280
Shares Outstanding: 618,334,000
Closely Held Shares: 267,967,762





Announcement
Date
Financial
Yr. End
QtrPeriod EndRevenue
RM '000
Profit/Lost
RM'000
EPSAmended
15-Dec-1031-Aug-11130-Nov-10491,50936,3335.83-
06-Oct-1031-Aug-10431-Aug-10541,38646,2357.30-
17-Jun-1031-Aug-10331-May-10555,85165,38010.66#-
17-Mar-1031-Aug-10228-Feb-10509,89572,25811.77#-

# adjusted for 2010 1/1 Bonus


Estimated EPS for 2011 = 4*5.83 = 23.32 sen
At price of 5.42, it is trading at prospective PE for 2011 = 5.42 / 0.2332 = 23 x

Year     DPS     EPS
2001    0.8       3.1
2002    0.6       3.5
2003    1.8       4.9
2004    2.4       7.6
2005    2.7     11.0
2006    3.0     14.6
2007    4.6     17.3
2008    5.5     18.7
2009  11.0     28.5
2010  16.0     39.84
1Q11   0.0      5.83      NTA 1.90

Historical
5 Yr
PE range 11.8 - 23.4
DY range 3.1% - 1.5%

10 Yr
PE range 10.1 -= 19.6
DY range 3.5% - 1.7%

Capital changes
2001   5.99/10 Rights @ RM 1.16
2002   3/10 Bonus
2003   2/5 Bonus
2005   1 to 2 Share Split
2007   2/5 Bonus
2010   1/1 Bonus

Tuesday 11 January 2011

Top Glove to spend RM80mil capex this year on expanding nitrile glove segment

Top Glove to spend RM80mil capex this year on expanding nitrile glove segment


Written by Melody Song of theeddgemalaysia
Tuesday, 11 January 2011 11:44


KUALA LUMPUR: Top Glove Corp Bhd plans to spend about RM80 million this year on expanding its nitrile glove business, including production of special products, said its chairman Tan Sri Lim Wee-Chai.

Speaking to analysts, fund managers and the press at the company's 1QFY11 briefing here today, Lim said nitrile gloves and special products such as coloured products and different-sized gloves will be its area of focus this year on the back of increasing latex prices, which have gone up by 57% year-on-year and 3% quarter-on-quarter.

Meanwhile, he said the industry was expected to grow up to 10% this year, while demand was expected to continue to average 8% growth.

When asked about possible M&As in the industry, Lim said with the company's strong cash levels of more than RM300 million, it was "on standby" to acquire companies that may have synergies with Top Glove.

"We had a number of willing sellers last year, but we waited, because this year valuations will come into play," said managing director KM Lee. "We want to look for the most cost-effective option for us."

http://www.theedgemalaysia.com/business/179993-flash-top-glove-to-spend-rm80mil-capex-this-year-on-expanding-nitrile-glove-segment.html

Wednesday 15 December 2010

Top Glove Corporation Berhad



Date announced 15-Dec-10
Quarter 30/11/2010 Qtr 1 FYE 31/08/2011

STOCK TOPGLOV C0DE  7113 

Price $ 5.45 Curr. PE (ttm) 15.33 Curr. DY 2.94%
LFY Div 16.00 DPO ratio 39%
ROE 18.7% PBT Margin 9.0% PAT Margin 7.3%

Rec. qRev 491509 q-q % chg -9% y-y% chq 4%
Rec qPbt 44405 q-q % chg 5% y-y% chq -49%
Rec. qEps 5.83 q-q % chg -20% y-y% chq -47%
ttm-Eps 35.56 q-q % chg -13% y-y% chq 5%

Using VERY CONSERVATIVE ESTIMATES:
EPS GR 5% Avg.H PE 13.00 Avg. L PE 9.00
Forecast High Pr 5.90 Forecast Low Pr 4.25 Recent Severe Low Pr 4.25

Current price is at Upper 1/3 of valuation zone.
RISK: Upside 27% Downside 73%
One Year Appreciation Potential 2% Avg. yield 3%
Avg. Total Annual Potential Return (over next 5 years) 5%

CPE/SPE 1.39 P/NTA 2.87 NTA 1.90 SPE 11.00 Rational Pr 3.91



Decision:
Already Owned: Buy Hold Sell Filed Review (future acq): Filed Discard: Filed
Guide: Valuation zones Lower 1/3 Buy Mid. 1/3 Maybe Upper 1/3 Sell

Aim:
To Buy a bargain: Buy at Lower 1/3 of Valuation Zone
To Minimise risk of Loss: Buy when risk is low i.e UPSIDE GAIN > 75% OR DOWNSIDE RISK <25%
To Double every 5 years: Seek for POTENTIAL RETURN of > 15%/yr.
To Prevent Loss: Sell immediately when fundamentals deteriorate
To Maximise Gain & Reduce Loss: Sell when CPE/SPE > 1.5, when in Upper 1/3 of Valuation Zone & Returns < 15%/yr


Stock Data: Recent Stock Performance:
Current Price (12/10/2010): 5.52
(Figures in Malaysian Ringgits)
1 Week -1.4% 13 Weeks 0.7%
4 Weeks -2.8% 52 Weeks 20.0%

Top Glove Corporation Berhad Key Data:
Ticker: TOPGLOV Country: MALAYSIA
Exchanges: KUL Major Industry: Apparel & Textiles
Sub Industry: Apparel Manufacturers

2010 Sales 2,079,432,000
(Year Ending Jan 2011). Employees: 11,500

Currency: Malaysian Ringgits Market Cap: 3,413,203,680
Fiscal Yr Ends: August Shares Outstanding: 618,334,000
Share Type: Ordinary Closely Held Shares: 267,967,762


Day's Range: 5.35 - 5.40
52wk Range: 4.98 - 14.54
Volume: 758,200

Saturday 13 November 2010

Topglove



Date announced 6-Oct-10
Quarter 31/08/2010 Qtr 4
FYE 31/08/2010

STOCK TOPGLOV
C0DE  7113 

Price $ 5.77 Curr. PE (ttm-Eps) 14.18 Curr. DY 2.77%
LFY Div 16.00 DPO ratio 39%
ROE 22.5% PBT Margin 7.8% PAT Margin 8.3%

Rec. qRev 541386 q-q % chg -3% y-y% chq 27%
Rec qPbt 42166 q-q % chg -49% y-y% chq -47%
Rec. qEps 7.30 q-q % chg -31% y-y% chq -24%
ttm-Eps 40.70 q-q % chg -5% y-y% chq 42%

Using VERY CONSERVATIVE ESTIMATES:
EPS GR 5% Avg.H PE 13.00 Avg. L PE 9.00
Forecast High Pr 6.75 Forecast Low Pr 4.98 Recent Severe Low Pr 4.98
Current price is at Middle 1/3 of valuation zone.

RISK: Upside 55% Downside 45%
One Year Appreciation Potential 3% Avg. yield 4%
Avg. Total Annual Potential Return (over next 5 years) 7%

CPE/SPE 1.29 P/NTA 3.19 NTA 1.81 SPE 11.00 Rational Pr 4.48



Decision:
Already Owned: Buy Hold Sell Filed; Review (future acq): Filed; Discard: Filed
Guide: Valuation zones Lower 1/3 Buy; Mid. 1/3 Maybe; Upper 1/3 Sell

Aim:
To Buy a bargain: Buy at Lower 1/3 of Valuation Zone
To Minimise risk of Loss: Buy when risk is low i.e UPSIDE GAIN > 75% OR DOWNSIDE RISK <25%
To Double every 5 years: Seek for POTENTIAL RETURN of > 15%/yr.
To Prevent Loss: Sell immediately when fundamentals deteriorate
To Maximise Gain & Reduce Loss: Sell when CPE/SPE > 1.5, when in Upper 1/3 of Valuation Zone & Returns < 15%/yr

Thursday 21 October 2010

Association tells glove makers to up prices

Written by Surin Murugiah
Wednesday, 20 October 2010 15:16


KUALA LUMPUR: The Malaysian Rubber Glove Manufacturers’ Association (Margma), whose members collectively supply 60% of the global rubber latex glove consumption, advised its members to raise glove prices in line with high raw material costs and continued weakening of the US dollar.

This may well explain the share price surge among the rubber glove makers on Bursa Malaysia yesterday.

Top Glove Corporation Bhd rose 19 sen to RM5.68 Supermax Corporation Bhd was up 14 sen sen to RM4.65, Latexx Partners Bhd up four sen to RM2.86, and Kossan Rubber Industries Bhd gained two sen to RM2.86.

But Hartalega Holdings Bhd shed four sen to RM5.42 while Rubberex Corporation (M) Bhd lost 0.5 sen to 85.5 sen.

In a statement yesterday, Margma president KM Lee said most rubber glove manufacturers had started raising selling prices of their products to reflect the rising raw material costs and the weakening of the US dollar.

“If the orders forthcoming do not match the glove price requested, glove makers have no choice but to reduce the output,” said Lee.

Margma said the price of natural rubber latex had increased by about 19% from an average 657.25 sen/kg in January 2010 to a new record high of 782 sen/kg last Friday.

Meanwhile, the US dollar has weakened against the ringgit by around 13% compared to 12 months ago, it said.

Rubber futures contract in Shanghai hit an all-time high yesterday boosted by strong demand at a time of restricted supply in main producing countries. Concerns that rubber production in China will be affected by typhoons also lent support to the futures price.

The Shanghai rubber futures contract for March delivery hit a record 33,000 yuan (RM15,438) per tonne, up 3.8% from the previous high of 31,800 yuan per tonne marked on Oct 15.

Lee said despite the strong headwinds, the industry would remain bullish as demand for gloves was expected to grow at between 8% and 10% annually.

“We expect further growth in the industry on the back of rising healthcare awareness in emerging markets, especially in China, India and the Latin American countries.

“Comparatively, the healthcare expenditure in these regions is relatively low against what is being spent in the US, Europe and Japan,” said Lee.

Lee added that the domestic glove industry was to a large extent recession-proof and was relatively unscathed even during the recent economic downturn, mainly due to gloves being a necessity in the healthcare sector.

However, he pointed out that the glove industry was facing constant challenge with the ever-fluctuating raw material prices, particularly natural rubber latex for rubber gloves and crude oil for nitrile gloves.

The association also urged the government to be considerate in the removal of the natural gas subsidy by not overburdening an already challenging industry with a big and sudden gas price hike.

The removal of the subsidy for natural gas should be done over a period of time, it said.

The association has 46 members and 89 associate members. The ordinary membership is open to all bona fide rubber glove makers in Malaysia while others who directly involved in the trade or industry are eligible for associate membership.


This article appeared in The Edge Financial Daily, October 20, 2010.